Limited Operating History; Need for Additional Capital
There is no historical financial information about us upon which to base an evaluation of our performance. We have no revenue generating assets. We cannot guarantee we will be successful in our business operations. Our business is subject to risks inherent in the establishment of a new business enterprise, including limited capital resources and possible cost overruns due to price and cost increases in services.
We will require additional financing to cover our costs that we expect to incur over the next twelve months. We believe that debt financing will not be an alternative for funding our operations as we do not have tangible assets to secure any debt financing. We anticipate that additional funding will be in the form of equity financing from the sale of our common stock. However, we cannot provide any assurance that we will be able to raise sufficient funding from the sale of our common stock to fund our plan of operations. In the absence of such financing, we will not be able to continue and our business plan will fail.
Results of Operations
We have not generated any revenues from our operations during the six-month period ended June 30, 2011 or during last two years.
We incurred general and administrative expenses of $32,579 for the six-month period ended June 30, 2011, as compared to $31,394 for the same period in 2010, an increase of $1,185 or 3%.
Our management fees remained the same at $30,000 for the six-months ended June 30, 2011 as for last year.
We did not incur any consulting or professional fees during either quarter.
Liquidity and Capital Resources
As at June 30, 2011, we had cash of $3,518.
Cash Used in Operating Activities
Net cash used in operating activities was $91,710 for the six-month period ended June 30, 2011. For the same period in 2010, there was net cash used of $57,760. For the period from April 6, 1998 (inception) to June 30, 2011, net cash used in operating activities was $1,915,941.
Cash Used in Investing Activities
We did not incur any investment costs in the six-month period ended June 30, 2011 or June 30, 2010. Net cash used in investing activities was $454,954 for the period from April 6, 1998 (inception) to June 30, 2011.
Cash from Financing Activities
We have funded our business to date primarily from sales of our common stock but did not sell any common stock during the six months ended June 30, 2011. There are no assurances that we will be able to achieve further sales of our common stock or any other form of additional financing. If we are unable to achieve the financing necessary to continue our plan of operations, then we will not be able to continue our operations and our business will fail.